Whilst it may not be a huge deal, we thought it was good to see that the Jullundur Motor Agency (Delhi) Limited (NSE:JMA) Joint MD & Executive Director, Deepak Arora, recently bought ₹3.3m worth of stock, for ₹23.81 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.
Jullundur Motor Agency (Delhi) Insider Transactions Over The Last Year
Notably, that recent purchase by Deepak Arora is the biggest insider purchase of Jullundur Motor Agency (Delhi) shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being ₹23.25). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 233k shares worth ₹6.3m. In the last twelve months Jullundur Motor Agency (Delhi) insiders were buying shares, but not selling. Their average price was about ₹26.85. I’d consider this a positive as it suggests insiders see value at around the current price, which is ₹23.25. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Jullundur Motor Agency (Delhi) insiders own about ₹418m worth of shares (which is 60% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Jullundur Motor Agency (Delhi) Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Jullundur Motor Agency (Delhi). Looks promising! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.